The tropical storm in the gulf has been upgraded to being a severe threat. Forecasters are predicting a 70% chance of becoming a cyclone. Energy traders will be monitoring the storms progress that should hit landfall by Friday.
Currently, the September Crude Oil is trading at 7823 which is up 65 points at this writing. Last night's API data reported a decline of 241,000 barrels versus expectations of a draw of 1.6 million barrels. Gasoline inventories were down 412,000 barrels while distillates showed a build. Todays EIA data may not be as big of a factor with traders' main concern being the storm in the gulf. Next week's number may give us an education of what disruption this storm inflicted on the flow of product.